PSALM still has P466 billion to be collected

State asset-seller
Power Sector Assets and Liabilities Management Corporation (PSALM) still has
US$9.36 billion (or P466.22 billion at current peso-dollar exchange rate) worth
of privatization proceeds to collect which may be utilized to pare its debts
and other financial obligations.

The company emphasized
that from its accomplished privatization mandate it fetched “a total of
US$19.891 billion,” and of the entire proceeds, “actual collection amounted to
US$10.531 billion,” as of second quarter of 2016.

Based on data from the
company, it has yet to receive payments at aggregate US$6.899 billion from the
independent power producer administrators (IPPAs) of the privatized power
supply contracts of the National Power Corporation.

The total proceeds from
IPPA appointments for the supply contract-assets had been at $9.957 billion and
only $3.059 billion had been remitted so far, according to PSALM.

The other major
collectibles of the state-run company would be on the balance for the 25-year
concession agreement being the privatization scheme for the National
Transmission Corporation’s (TransCo) assets.

PSALM noted that concessionaire
National Grid Corporation of the Philippines (NGCP) still has a balance of
$2.462 billion, following its prepayment of equivalent $1.5 billion three years
ago.

Total proceeds from
TransCo’s privatization was pegged at $6.383 billion and of that, $3.921
billion had already been paid by the Sy-led concessionaire firm.

For divested generating
assets and decommissioned plants, there had already been full payments of
$3.547 billion and $4.0 million, respectively.

PSALM stressed that of
the $9.813 billion worth of proceeds already utilized, “$9.709 billion or 98.94
percent was used for the liquidation of financial obligations.”

It added that “the
difference between the total amount collected and total utilization in the
amount of $0.718 billion is placed in temporary investments while awaiting
utilization.”

As of mid-2016, PSALM
debt prepayments had been placed at $1.298 billion; regular debt service at
$5.783 billion; and lease obligations for build-operate-transfer (BOT)
contracts at $2.628 billion; while its privatization-related expenses totaled
$104 million; and allotment for operating expenses of TransCo at $1.0 million.